Cross-Border Private Equity Syndication: The Effect of Institutional Environment and Organisation Learning

Chopraa, Riya (2008) Cross-Border Private Equity Syndication: The Effect of Institutional Environment and Organisation Learning. [Dissertation (University of Nottingham only)] (Unpublished)

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Private Equity (PE) is a progressive international phenomenon. However, the research in this field lacks the investigation of the factors that influence the private equity firms' investment decisions when investing across the national borders. The novel aspect of this research is that it aims to fill the gap in the cross-border syndication literature by the examining the affect of the institutional factors and organisational learning on a private equity firms' cross-border syndication decisions.

The research is based upon the international expansion of 69 later stage private equity investors from the United Kingdom investing into Continental Europe (CE) for the period 1991-2006. The report begins with an evaluation of the private equity market in the UK and CE, followed by a review of the relevant literature to facilitate the understanding of cross-border private equity investments and private equity firms' motivation for syndicating with local firms.

The results suggest that presence of a private equity firms' local office in the host country does not produce any effect on its proclivity to syndicate with local firms. Within the institutional environment, the differences in the regulatory aspects are significantly related to cross-border syndication decisions. The more stock market based the financial structure of the host country and the more investor protection it offers, the less will be the number of syndicated buy-out deals by the UK PE firms. Cultural distance from the host country concludes an indecisive effect. Private equity firms with high organisational learning in the form of additional host country knowledge, increased multi-country experience and large human resource base are less probable towards cross-border syndication.

Item Type: Dissertation (University of Nottingham only)
Keywords: private equity, cross-border syndication
Depositing User: EP, Services
Date Deposited: 07 Jan 2009
Last Modified: 24 Oct 2016 11:20

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